Résumé
We extend an analytically solvable core-periphery model by introducing a monopolistically competitive sector of non-tradable goods that is mobile across regions. We find that when the elasticity of substitution among non-tradable goods is very low, there is agglomeration of all the production (of both tradable and non-tradable goods). When the elasticity of substitution among non-tradable goods is sufficiently high (“no black-hole” condition), then there is symmetric dispersion of all the production, if trade costs are high; or full agglomeration of the production of tradable goods with partial agglomeration of the production of non-tradable goods, if trade costs are low.
Codes JEL
- F12: Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
- R12: Size and Spatial Distributions of Regional Economic Activity
Référence
Sofia B. S. D Castro, Joao Correia da silva et Vasco Leite, « A third sector in the core-periphery model: non-tradable goods », The Annals of Regional Science, vol. 50, n° 1, février 2013, p. 71–108.
Voir aussi
Publié dans
The Annals of Regional Science, vol. 50, n° 1, février 2013, p. 71–108